Reagan stumps South for 'new federalism' program

President Reagan defended his economic program before the Alabama legislature , brandishing a veto threat toward those in Congress who ''bust the budget'' and pick Americans' pockets with high taxes.

Mr. Reagan also referred frequently to faith in God as a pillar of American life. He criticized those who would use the Constitution ''to exclude God from more and more of our institutions and everyday life.'' The Constitution, he said , ''was not written to protect the people from religious values.''